Housing Subsidy: State Building Subsidies Promotion

Housing Subsidy: State Building Subsidies Promotion

In Germany, consumers can benefit from the so-called Wohnungsbauprämie (WoP), a state housing promotion subsidy . The subsidy, which was introduced in 1952, together with the employee savings bonus, is a pillar of German housing subsidies.

Under the Housing Premiums Act, all unrestricted taxpayers over the age of 16 or full orphans are entitled to the premium if they do not exceed the established income thresholds and pay premium-friendly expenses. All German citizens whose domicile or residence is in Germany are subject to unlimited taxation.

Premium Benefit Expenditure

The following applications are subject to & sect; 2 WoPG favors housing subsidies:

  • Contributions to building and loan associations to obtain building loans
  • Expenses for the first-time acquisition of shares in housing and construction cooperatives
  • Contributions due to savings (contracts)

The exact conditions are the & sect; Income Limits

The

Housing Premium is paid only if interested parties do not exceed specified income limits. For singles this means 25,600 euros and for spouses 51,200 euros. The taxable income also plays a major role. The

gross income may be higher. Single workers who are subject to social insurance may have a gross annual income of more than € 30,300. A married person whose spouse is an employee and who both have two children can earn a gross income of 72,600 euros and still receive the housing premium. Allowances such as travel costs or advertising costs exceeding the employee allowance of € 920 are not yet taken into account. Consumers may also apply for the Housing Premium for

capital contributions which are not benefiting from savings because they are above the income threshold. In this case, the taxable income is € 17,900 for single people and € 35,800 for married people. Housing premium

The German government generally grants a premium of

8.8 percent up to the maximum benefits of 512 euros for single people and 1,024 euros for married people. Prerequisite for the payment of the housing premium is that in the savings year at least 50 euros as premium-entitled Bauspar contributions - this includes interest - pays. The following are taken into consideration: current building savings contributions

  • credit interest on home savings accounts
  • additionally paid termination fees
  • In view of the maximum premiums per calendar year mentioned above, the annual payment, which is transferred from the tax office to the building society and then credited to the building savings account, amounts to to 45.06 Euro or 90.11 Euro (

& 3; 2 WoPG ). Application

The application is made directly to the desired building society. At the beginning of the year, the building society sends the housing subsidy application together with the

annual account statement to savers. The Bausparer must complete the application and sign (with the spouse). By signing, the homeowner commits himself to respect the income limits. The application period is two years after expiry of the savings year. However, it is in the interest of the home loan saver to send the application to its building society as soon as possible. Once done, the company calculates the housing premium. The sum becomes after expiration of a Blocking period (seven years) transferred to the Bauspar contract. Owners of several savings contracts can also split the bonus. Then he must also note whether premiums have already been applied for at other building societies and how high they were. Blocking period

The seven-year blocking period must be strictly adhered to, otherwise the payment of the housing premium will not be made. However, there is one exception that grants premiums despite early termination: consumers will receive them when they use the money to buy or build a property or for renovations.

Disbursement

Following a legislative change in 2008, there are different methods of payment or

crediting the premium . It is up to you to decide when the building society savings contract has been concluded. For contracts from 2009, the following applies:

: The seven-year commitment period, which stipulates that Bauspar funds are harmless after their expiration, is no longer valid. Accordingly, contributions to building societies are only subsidized for the construction, purchase, modernization and deleveraging of real estate, ie

residential use . This rule also applies to the contracts concluded in 2008. The Bauspar credit is then paid without loss of housing premiums, if there

there is an allocation for residential use or

  • a lending or cession of the Bauspar contract for residential use
  • Exemptions for harmless use also exist after the changes from 2009, namely, when:

The home loan saver at contract conclusion

  1. is not older than 24 years . However, the exemption rule is only used for a home savings contract and only once in a lifetime. The homeowner's premium is also limited to the last seven years of savings. The homeowner or spouse dies or becomes incapacitated after the contract has been concluded.
  2. The homeowner becomes unemployed after conclusion of the contract. Unemployment lasts uninterrupted for one year and continues at the time of the early release.
  3. For contracts from 2008,

applies: The seven-year commitment period also applies to home savings contracts that have been concluded by 21.12.2008. Prior to the expiration of the retention period, interested parties can dispose of their home savings contract harmlessly as follows:

if allotment

  • if mortgage loan
  • loaned or assigned
  • in social hardship

The aforementioned provisions also apply to increases or mergers a home savings contract . After an increase, there are two different retention periods:

  • for deposits on the increased part of the home savings amount
  • for payments to the original contract

After merger, there are two savings contracts in terms of tax law, which have different retention periods and partly different legal requirements

Example calculation

An individual (with or without a child) will move into a 50 square meter apartment.

Payment of shares (GA) :

GA 50/2 = 25 * to be acquired 150 = 3,750 €

Payment on admission:
Admission fee 15,00 €
1. Share 150,00 €
Total: 165,00 €
Payment at collection:
Payment 25% of GA according to statutes: 750,00 €
installment :
60 months. Rates for each: 47,50 €

Calculation of the Housing Premium :

1. Year
Payment 1st share at admission: 150,00 €
Payment at move-in in June: 750,00 €
Monthly. Rate a € 47.50 (Jul - Dec): € 332.50
Total: <€ 1.232,50 €
Housing premium: 8.8% of € 512: <€ 45 , 06 €
Business balance after 1st year 1,277.56 €
2. Year
monthly. Rate a 47,50 € (Jan. - Dec.) 570,00 €
Housing premium: 8,8% from 512 € 45,06 €
Business balance after 2nd year 1,892.62 €
3. Year
monthly. Rate a 47.50 € (Jan. - Dec.) 570.00 €
Housing premium: 8.8% from 512 € 45.06 €
Business balance after 2nd year 2.507,68 €
4. Year
monthly. Rate a 47.50 € (Jan. - Dec.) 570.00 €
Housing premium: 8.8% from 512 € 45.06 €
Business balance after 2nd year 3,122.74 €
5. Year
monthly. Rate a 47.50 € (Jan. - Dec.) 570.00 €
Housing premium: 8.8% from 512 € 45.06 €
Business balance after 2nd year 3,750.00 €

Sum of the housing premium: 5x 45.06 € = 225.30 €

According to the example above, interested people would receive a housing premium of € 225.30 within five years. The annual premium is credited to the business balance and the monthly installment payment of originally 60 months is reduced to 55 months.

Artikelbild: © Denis Vrublevski / Shutterstock


Search